Salesforce Inc (NYSE: CRM) shares are rising Thursday morning following the enterprise software company’s third-quarter report, which topped estimates and showed continued growth ahead.
What To Know: Third-quarter revenue increased 9% year-over-year to $10.26 billion, coming up just shy of the consensus estimate of $10.27 billion, per [Benzinga Pro. The company showed strong profitability, reporting adjusted earnings of $3.25 per share versus expectations of $2.86 per share.
Remaining performance obligations rose 11% to $29.4 billion, which CEO Marc Benioff highlighted in the release, setting the company up for a stronger outlook.
“Q3 cRPO was exceptional … signaling a powerful pipeline of future revenue,” Benioff said.
Salesforce guided for fourth-quarter revenue of $11.13 billion to $11.23 billion versus estimates of $10.90 billion. The company expects adjusted earnings of $3.02 to $3.04 per share in the fourth quarter, roughly in line with the $3.04 per share analysts have been forecasting.
Salesforce raised its fiscal 2026 outlook. The company now projects revenue between $41.45 billion and $41.55 billion versus expectations of $41.25 billion. Salesforce also lifted full-year adjusted earnings guidance to $11.75 to $11.77 per share versus estimates of $11.37 per share.
“Our Agentforce and Data 360 products are the momentum drivers, hitting nearly $1.4 billion in ARR — an explosive 114% year-over-year gain,” Benioff added.
Following the print, Needham analyst Scott Berg reiterated a Buy rating and maintained a price target of $400. Meanwhile, Citizens analyst Patrick Walravens maintained a Market Outperform and lowered its price target from $430 to $405.
CRM Price Action: Salesforce shares were up 1.73%, trading at approximately $242.86 at the time of publication on Thursday, according to [Benzinga Pro.
CRM Analysis: Salesforce is currently navigating a challenging technical landscape, with the stock trading 6.5% below its 200-day SMA, indicating a bearish long-term trend. The recent price action shows shares slightly above the 20-day SMA by 3%, but overall momentum remains weak given the broader downtrend reflected in the 12-month performance of negative 35.11%.
The RSI is sitting at 50.07, suggesting a neutral stance, which means there's no immediate overbought or oversold pressure. Meanwhile, the MACD is below its signal line, but charts are showing a bullish divergence, indicating potential upward momentum if the price can break through key resistance at $246, which it has been testing ahead of the market open.
In December, the stock experienced a death cross, with the 50-day SMA crossing below the 200-day SMA, which typically signals a continuation of bearish sentiment. This positioning suggests that traders should be cautious.
If the stock tests the support level at $222, a breach could signal further downside potential, while a move above resistance at $246 might indicate a trend reversal. Given the current technical setup, traders should watch for any signs of a reversal or continuation of the bearish trend as the stock navigates these critical levels.